Varena is a medium size town about 1 hour away from Vilnius. 13.000 of the inhabitants are supplied
with heat from a boiler house. SPAB Alytaus Siluma was the owner of the boiler house until 2000
when the ownership was passed to SPAB Varenos Siluma. The boiler house also supplies steam to
nearby industries. The boiler house had three DKVR 10-13 steam boilers and two KVGM hot water
boilers, all burning heavy oil.

Type of project:a)

Fuel switching to renewable

Location (exact, e.g. city, region, state):

Varena town

Alytus District

LITHUANIA

Activity starting date:

1995- 03-219(letter of Intent)

In operation from:

May 1997

Expected activity ending date:

30. September 2005

Stage of activity:b)

Complete

Lifetime of activity if different from ending date:c)

Expected technical lifetime is 25 years which means that the plant is expected to be in operation
till 2020.

Technical data:d)

A new pre-furnace for burning wood chips and a new DE-25 steam boiler have been installed. The DE
boiler has both an ordinary economiser for preheating the feed-water and an extra economiser that
heats the district heating water. The latter economiser is an experiment that may cool the flue
gases below water dew point and thus using a part of condensation energy in flue gases. New boiler
has an estimated power output of 8 MW. Annual heat production is around 60 000 MWh.

c) Methodological work will be required to define lifetime of activities.

d) Methodological work will be required to determine for each types of activity what the minimum data
requirements are.

The lifetime criteria have been arranged in different groups depending on type of implemented activities.
This classification assumes a level of operation and maintenance that is normal in western countries.

Lifetime of activity

Heat production plants (bio fuel)

25 years

New installation of all main equipment parts (fuel handling system, firing equipment and boiler)
and modernisation of secondary equipment.

15 years

Conversion of existing boiler but new installation fuel handling system and firing equipment.
Modernisation of secondary equipment.

10 years

Limited installation of new equipment (only one part of the three main parts, normally the firing
equipment). Modernisation of other equipment.

Heat distribution systems and sub-stations

25 years

Pre-fabricated pipes and installations using certified contractors and supervisor according to EN
norms and applicable district heating practise

15 years

Pre-fabricated pipes and installations without using certified contractors and supervisor

10 years

Modernisation of existing pipes.

Energy efficiency in buildings

25 years

Additional insulation roofs walls etc. with Scandinavian technology.

New installed heating systems.

15 years

Renovation and balancing of heating systems including thermostat valves.

10 years

Weather stripping windows, doors etc.

If a combination of measures is done a reasonable lifetime for the project have to be calculated.

4) Plant cost (to the extent possible):

To the investment costs are referred the cost of the investment proper and the accumulated interest during
the grace period, generally 2 years.

The AIJ/JI cost items are the costs for:

Technical assistance, a technical and administrative support from consultants, during the period from
definition of the project till commissioning. These costs are paid by STEM.

Follow-up, an annual technical and economic follow-up by consultants, hired by STEM, of the operating
results of the plant with the objective to improve on its tech-economic sustainability and its climate
effect. The cost indicated is an average cost per project.

Reporting costs – i e costs in connection with the annual reporting of the project’s
climate effects to UNFCCC. The cost indicated is an average cost per project.

Administration – average costs of STEM staff per project.

Difference in interest rates. STEM applies for its loans generally an interest rate corresponding to
6-month STIBOR (Stockholm InterBank Rate, in April 1999 3,0 %). Assuming a normal lending rate of 7 % means
that this loan is associated with a cost of 4 % in relation to normal lending rate.

Investment/instalment = the borrower’s possible own financing of the investment, followed by the
borrower’s repayment of the loan.

All costs in USD

Country

Varena Bc

1996

1997

1998

1999

2000

0

1

2

3

4

Investment

1. Loan/debt to STEM

518200

650600

569300

487963

411049

2. Added costs

60300

72100

0

0

4423

3.Technical assistance

90000

0

0

0

0

AIJ/JI

4. Follow up

0

8500

2200

2267

2139

A. Sweden

Costs

5. Reporting costs

0

851

0

744

301

6. Administration

40000

0

0

0

0

7. Difference in interest

4%

26024

22772

19519

16442

8.Accum. costs for AIJ/JI

130000

165375

190347

212877

231759

9.Total costs

708500

815975

759647

700840

642808

Investment

1. Investment/Instalment

0

0

81300

81337

81337

2. Lithuania

AIJ/JI

2. Reporting costs

0

0

0

0

0

Costs

3. Other costs

0

0

0

0

0

4. Accum. costs for AIJ/JI

0

0

0

0

0

5. Total costs

0

0

81300

162637

243974

1 USD=

10

SEK

5) Mutually agreed assessment procedures:

Describe the procedures, including name of organisations involved

Lithuanian Ministry of Environment is a central Lithuanian authority responsible on reporting of
JI-projects. This authority assigns a local organisation Lithuanian Energy Institute that is
involved in to the evaluation of the climate effects of this project. Lithuanian Energy Institute
takes the main responsibility to continue measuring, results collecting for JI-reporting.

a) Please ensure that detailed contact information for all organisations mentioned is reported under

Section A.2 above.

B. Governmental acceptance, approval or endorsement

Bearing in mind that all activities implemented jointly under this pilot phase require prior acceptance,
approval or endorsement by the Governments of the Parties participating in these activities, which shall be
shown as follows:

(a) In the case of joint reporting, the report is submitted by the designated national authority of one
participating Party with the concurrence of all other participating Parties as evidenced by attached
letters issued by the relevant national authorities;

(b) In the case of separate reporting, the reports are submitted separately by the designated national
authority of each and every participating Party. Information will only be compiled once reports have been
received from all participating Parties.

* Subsequent reports:

Fourth report.

This report is a joint report:

Yes, Endorsement letter was submitted 2001.

3) General short comment by the government(s) if applicable:

Yes, Agreement with Lithuanian Ministry of the Environment was signed on March 2000.

C. Compatibility with and supportiveness of national economic development and socio-economic and
environment priorities and strategies

Describe (to the extent possible) how the activity is compatible with and supportive of national
economic development and socio-economic and environment priorities and strategies

The project meets with the following objectives in the Lithuanian energy sector:

- to reduce the energy intensity

- to reduce dependence on fuel imports

- to create new working places

- to involve the local companies into production of equipment for new firing technology

- to create and improve energy infrastructure based on indigenous energy resources

- to utilise the existing energy production capacity efficiently

- to reduce of fossil fuel consumption which results in emission reduction and currency saving

- to develop co-operation between Baltic, Nordic and other Central European countries

D. Benefits derived from the activities implemented jointly project

Whenever possible, quantitative information should be provided. Failing that, a qualitative description
should be given. If quantitative information becomes available, it could be submitted using the update(s).
(If the amount of quantitative information is too large, the source could be indicated.)

Reduction of heat price for heating and hot water preparation about 20%

Do quantitative data exist for evaluation of economic benefits?

Yes. Collected by LEI experts since 1997 and updated every year.

E. Calculation of the contribution of activities implemented jointly projects that bring about real,
measurable and long-term environmental benefits related to the mitigation of climate change that would not
have occurred in the absence of such activities

1) Estimated emissions without the activity (project baseline):

Description of the baseline or reference scenario, including methodologies applied:

Present data reflect emission reductions using status quo (emissions in the period before the conversion to
renewable fuel) for the baseline case. Calculation methods are being revised and will result in a change in
emission reduction. The new data will be introduced as soon as available.

2) Estimated emissions with the activity:

Description of the scenario, including methodologies applied:

Emission reductions are calculated using the IPCC Guidelines, using the Carbon Emission Factor (CEF) for
different types of fuel, using actual system efficiency. For boiler conversion, the decrease in emissions
is calculated in relation to the amount of fossil fuel replaced (status quo).

For a energy efficiency project the decrease in emissions reflects the amount of fuel that is saved through
the project. In the case that the system uses renewable fuels, the reduction is calculated comparing the
amount of fossil fuels that was used before the conversion to renewable fuels.

Below comparison is based upon that the base-line scenario represents a status quo solution.

Fill in the following tables as applicable:

Summary table: Projected emission reductions:

GHG

Year 1

= 1996

Year 2

= 1997

Year 3

= 1998

Year 4

= 1999

Year 5

= 2000

...

Year 25

Planned energy production MWh/year

Biofuel

Mazout /light-oil

60 000

30 000

60 000

30 000

60 000

30 000

60 000

30 000

60 000

30 000

60 000

30 000

Planned annual fuel consumption MWh/year

Biofuel

Mazout/light oil

73 171

35 296

73 171

35 296

73 171

35 296

73 171

35 296

73 171

35 296

73 171

35 296

A) Project baseline scenario

CO2

29 570

29 274*

29 570

29 274

29 570

29 274

29 570

29 274

29 570

29 274

29 570

29 274

CH4

-

N2O

-

other

-

B) Project activity scenarioa)

CO2

9 857

9 758

9 857

9 758

9 857

9 758

9 857

9 758

9 857

9 758

9 857

9 758

CH4

-

N2O

-

other

-

C) Effect (B-A)

CO2

-19 713

-19 516

-19 713

-19 516

-19 713

-19 516

-19 713

-19 516

-19 713

-19 516

-19 713

-19 516

CH4

N2O

-

Other

-

D) Cumulative effect

CO2

-19 713

-39 426

-59 139

-78 852

-98 565

- 492 825

CH4

-19 516

-39 032

-58 548

-78 064

-97 580

-487 900

N2O

-

Other

-

a) Includes indirect GHG leakages.

* The data in black colour are calculated using the programme provided by ÅF Energikonsult Syd AB.
The data in red colour presented in this table are calculated according to formulas and discounting values
from DNV "Multi-Project Verification of 31 Swedish-Baltic AIJ Projects" report. Almost all
recommendations and remarks from DNV "Multi-Project Verification of 31 Swedish-Baltic AIJ
Projects" report are involved in these calculations.

Summary table: Actual emission reductions:

GHG

Year 1

= 1996

Year 2

= 1997

Year 3

= 1998

Year 4

= 1999

Year 5

= 2000

...

Year 25

Factual energy production MWh/year

Biofuel

Mazout /light-oil

13 312

30 617

30 731

52 241

28 224

54 489

28 202

44 258

37 565

27 386

27607

41 798

Factual annual fuel consumption MWh/year

Biofuel

Mazout/light oil

16 234

36 020

37 477

61 460

34 420

64 105

34 393

52 068

45 811

32 219

33 667

49 174

A) Project baseline scenario

CO2

14 433

27 261

27 176

23 807

21 340

22 803

CH4

-

N2O

-

other

-

B) Project activity scenarioa)

CO2

10 059

17 164

17 903

14 541

8998

13 733

CH4

-

N2O

-

other

-

C) Effect (B-A)

CO2

-4 374

-4 329*

-10 097

-9 996

-9 273

-9 180

-9 266

-9 173

-12 342

-12 219

-9 070

-8 979

CH4

-

N2O

-

Other

-

D) Cumulative effect

CO2

-4 374

-4 329

-14 471

-14 325

-23 744

-23 505

-33 010

-32 678

-45 352

-44 897

-226 752

-224 477

CH4

-

N2O

-

Other

-

a) Includes indirect GHG leakages.

* The data in black colour are calculated using the programme provided by ÅF Energikonsult Syd AB.
The data in red colour presented in this table are calculated according to formulas and discounting values
from DNV "Multi-Project Verification of 31 Swedish-Baltic AIJ Projects" report. Almost all
recommendations and remarks from DNV "Multi-Project Verification of 31 Swedish-Baltic AIJ
Projects" report are involved in these calculations.

F. Additionally to financial obligations of Parties included in Annex II to the Convention within the
framework of the financial mechanism as well as to current official development assistance flows

Please indicate all sources of project funding.

Category of funding

(For each source one line)

Amount

(US dollars)

Loan from NUTEK

815.000

Grant from NUTEK for technical assistance

120.000

1 USD = 7.50 SEK

G. Contribution to capacity building, transfer of environmentally sound technologies and know-how to
other Parties, particularly developing country Parties, to enable them to implement the provisions of the
Convention. In this process, the developed country Parties shall support the development and enhancement of
endogenous capacities and technologies of developing country Parties

Transfer of environmentally sound technologies and know-how

Describe briefly

Schematically, the transfer of knowledge involves the following activities over time:

i) Technology transfer through STEM technical specialist during the implementation of the project.

Technology transfer through co-operation between foreign supplier and local partner

Conferences, seminars, documentation and training.

iv) Stimulate "net-working" for the exchange or experience between plant owners with
similar problems, e g "bio-clubs"

Technology transfer has taken place through

STEM technical specialist support to the local project leader and municipality.

The following up group for testing and adjustment of converted boilers has been formed in
Lithuanian Energy Institute. Personnel of Heat-Equipment Research and Testing Laboratory is
carrying out following up procedures keeping a close relation with and AF Energikonsult company as
the main supervisor of conversion projects supported by STEM.

The local company "Kazlu Rudos Metalas" with participation of Swedish
company "Hotab" mainly performed the execution of these biofuel conversion projects.

iii) Personal from boiler plant has been invited to different seminars and workshops, documentation
for training has been handed over.

There were arranged three seminars through close co-operation between STEM and LEI:

Association "Bioenergy and energy saving" has been founded at the end of 1997 to
co-ordinate the attempts of wood firing equipment producers, wood wastes suppliers and owners of
boiler plants.

Endogenous capacity supported or enhanced:

Endogenous capacity

(Name of organisation1)

Development (DEV) /

enhancement (ENH)

Describe briefly

AB "Kazlu Rudos Metalas"

AB "Kazlu Rudos Metalas"

AB "Umega"

AB "Kazlu Rudos Metalas"

AB "Singaras"

AB "Menranga"

AB "Germeta"

DEV

DEV

DEV

ENH

New biofuel firing technology was developed. Experience in installation and maintenance of modern
western technology.

The new modern equipment for production pellets from wood dust were developed as demand for other
wood fuel kinds increased

The straw burning technology was started to spread as continuation of successfully realized biofuel
conversion projects.

Many smaller boiler conversion projects were successfully finished in Lithuania by local companies
AB "Kazlu Rudos Metalas", AB "Singaras", AB "Elhamers" during past
five years. The implementation of these projects was initiated by the successfully realized STEM
projects.

Ukmerge is a small town with 30 000 inhabitants approximately 70 km north of Vilnius. Vienybe Joint
Stock Company is a privately owned metal industry company in Ukmerge. The company's heating
plant is the supplier of heat to its own facilities only. There were plans to deliver heat to other
industries and an adjacent residential area at the project start but unfortunately those plans have
not been realised. The plant has five gas or mazut-fired boilers, three DKVR 10, one DKVR 20 and
one DE 16 boiler.

Annual energy production was estimated about 50 000 MWh at the initial stage of the project.

Type of project:a)

Fuel switching to renewable

Location (exact, e.g. city, region,

state):

Ukmerge town

Ukmerge District

LITHUANIA

Activity starting date:

31 March 1995 (Letter of Intent)

In operation from:

April 1996

Expected activity ending date:

30 September 2005

Stage of activity:b)

Complete

Lifetime of activity if different from ending date:c)

Expected technical lifetime is 15 years which means that the plant is expected to be in operation
till 2010.

Technical data:d)

One of the DKVR 10-13 boilers has been converted to wood chips firing with an estimated power
output of 6 MW and an annual heat production of around 38 000 MWh.

c) Methodological work will be required to define lifetime of activities.

d) Methodological work will be required to determine for each type of activity what the minimum data
requirements are.

Lifetime of activity

Heat production plants (bio fuel)

25 years

New installation of all main equipment parts (fuel handling system, firing equipment and boiler)
and modernisation of secondary equipment.

15 years

Conversion of existing boiler but new installation fuel handling system and firing equipment.
Modernisation of secondary equipment.

10 years

Limited installation of new equipment (only one part of the three main parts, normally the firing
equipment). Modernisation of other equipment.

Heat distribution systems and sub-stations

25 years

Pre-fabricated pipes and installations using certified contractors and supervisor according to EN
norms and applicable district heating practise

15 years

Pre-fabricated pipes and installations without using certified contractors and supervisor

10 years

Modernisation of existing pipes.

Energy efficiency in buildings

25 years

Additional insulation roofs walls etc. with Scandinavian technology.

New installed heating systems.

15 years

Renovation and balancing of heating systems including thermostat valves.

10 years

Weather stripping windows, doors etc.

If a combination of measures is done a reasonable lifetime for the project have to be calculated.

4) Plant cost (to the extent possible):

To the investment costs are referred the cost of the investment proper and the accumulated interest during
the grace period, generally 2 years.

The AIJ/JI cost items are the costs for:

Technical assistance, a technical and administrative support from consultants, during the period from
definition of the project till commissioning. These costs are paid by STEM.

Follow-up, an annual technical and economic follow-up by consultants, hired by STEM, of the operating
results of the plant with the objective to improve on its techno-economic sustainability and its climate
effect. The cost indicated is an average cost per project.

Reporting costs – i e costs in connection with the annual reporting of the project’s
climate effects to UNFCCC. The cost indicated is an average cost per project.

Administration – average costs of STEM staff per project.

Difference in interest rates. STEM applies for its loans generally an interest rate corresponding to
6-month STIBOR (Stockholm InterBank Rate, in April 1999 3,0 %). Assuming a normal lending rate of 7 % means
that this loan is associated with a cost of 4 % in relation to normal lending rate.

Investment/instalment = the borrower’s possible own financing of the investment, followed by the
borrower’s repayment of the loan.

All costs in USD

Country

Vienybe BC

1996

1997

1998

1999

2000

0

1

2

3

4

Investment

1. Loan/debt to STEM

465100

528200

507500

518511

524048

2. Added costs

36700

26400

12300

11011

5537

3.Technical assistance

64000

0

0

0

0

AIJ/JI

4. Follow up

0

8500

2200

2267

2139

A. Sweden

costs

5. Reporting costs

0

851

0

744

301

6. Administration

40000

0

0

0

0

7. Difference in interest

4%

21128

20300

20740

20962

8.Accum. costs for AIJ/JI

104000

134479

156979

180731

204133

9.Total costs

605800

662679

664479

699241

728181

Investment

1. Investment/Instalment

0

0

33000

0

0

2. Lithuania

AIJ/JI

2. Reporting costs

0

0

0

0

0

costs

3. Other costs

0

0

0

0

0

4. Accum. costs for AIJ/JI

0

0

0

0

0

5. Total costs

0

0

33000

33000

33000

1 USD=

10

SEK

5) Mutually agreed assessment procedures:

Describe the procedures, including name of organizations involveda):

Lithuanian Ministry of Environment is a central Lithuanian authority responsible on reporting of
JI-projects. This authority assigns a local organisation Lithuanian Energy Institute that is
involved in to the evaluation of the climate effects of this project. Lithuanian Energy Institute
takes the main responsibility to continue measuring, results collecting for JI-reporting.

Bearing in mind that all activities implemented jointly under this pilot phase require prior acceptance,
approval or endorsement by the Governments of the Parties participating in these activities, which shall be
shown as follows:

(a) In the case of joint reporting, the report is submitted by the designated national authority of one
participating Party with the concurrence of all other participating Parties as evidenced by attached
letters issued by the relevant national authorities;

(b) In the case of separate reporting, the reports are submitted separately by the designated national
authority of each and every participating Party. Information will only be compiled once reports have been
received from all participating Parties.

1) For the activity:

* Subsequent reports:

Fourth report.

This report is a joint report:

Yes, Endorsement letter was submitted 2001.

3) General short comment by the government(s) if applicable:

Yes, Agreement with Lithuanian Ministry of the Environment was signed on March 2000.

C. Compatibility with and supportiveness of national economic development and socio economic and
environment priorities and strategies

Describe (to the extent possible) how the activity is compatible with and supportive of national
economic development and socio economic and environment priorities and strategies

The project meets with the following objectives in the Lithuanian energy sector:

- to reduce the energy intensity

- to reduce dependence on fuel imports

- to create new working places

- to involve the local companies into production of equipment for new firing technology

- to create and improve energy infrastructure based on indigenous energy resources

- to utilize the existing energy production capacity efficiently

- to reduce of fossil fuel consumption which results in emission reduction and currency saving

- to develop cooperation between Baltic, Nordic and other Central European countries

D. Benefits derived from the activities implemented jointly project

Whenever possible, quantitative information should be provided. Failing that, a qualitative description
should be given. If quantitative information becomes available, it could be submitted using the update(s).
(If the amount of quantitative information is too large, the source could be indicated.)

Item

Please fill in

Describe environmental benefits in detail:

Annual emissions reduction:

Projected 2000

7 278 ton CO2 1 657 ton CO2

8 984* 2 045

6 208 1 413

10 ton SO2 2 ton SO2

1 ton NOx 0 ton NOx

Improved sivilculture

Lower pollution in district

Do quantitative data exist for evaluation of environmental benefits?

No.

Describe social/cultural benefits in detail:

More stable energy supply.

Improved working conditions, increased motivation

More employment (fuel companies)

Improved trade balance.

Do quantitative data exist for evaluation of social benefits?

No.

Describe economic benefits in detail:

Decreased fuel costs approx. 3.5 USD/MWh.

Do quantitative data exist for evaluation of economic benefits?

Yes. Collected by LEI experts since 1997 and updated every year.

E. Calculation of the contribution of activities implemented jointly projects that bring about real,
measurable and long-term environmental benefits related to the mitigation of climate change that would not
have occurred in the absence of such activities

1) Estimated emissions without the activity (project baseline):

Description of the baseline or reference scenario, including methodologies applied:

Present data reflect emission reductions using status quo (emissions in the period before the conversion to
renewable fuel) for the baseline case.

Calculation methods are being revised and will result in a change in emission reduction.

The new data will be introduced as soon as available.

2) Estimated emissions with the activity:

Description of the scenario, including methodologies applied:

Emission reductions are calculated using the IPCC Guidelines, using the Carbon Emission Factor (CEF) for
different types of fuel, using actual system efficiency. For boiler conversion, the decrease in emissions
is calculated in relation to the amount of fossil fuel replaced (status quo).

For a energy efficiency project the decrease in emissions reflects the amount of fuel that is saved through
the project. In the case that the system uses renewable fuels, the reduction is calculated comparing the
amount of fossil fuels that was used before the conversion to renewable fuels.

Below comparison is based upon that the base-line scenario represents a status quo solution.

Fill in the following tables as applicable:

Summary table: Projected emission reductions:

GHG

Year 1

= 1996

Year 2

= 1997

Year 3

= 1998

Year 4

= 1999

Year 5

= 2000

...

Year 15

Planned energy production MWh/year

Biofuel

Natural gas

38 000

12 000

38 000

12 000

38 000

12 000

38 000

12 000

38 000

12 000

38 000

12 000

Planned annual fuel consumption MWh/year

Biofuel

Natural gas

47 500

14 118

47 500

14 118

47 500

14 118

47 500

14 118

47 500

14 118

47 500

14 118

A) Project baseline scenario

CO2

9 576

11 821*

8 168

9 576

11 821

8 168

9 576

11 821

8 168

9 576

11 821

8 168

9 576

11 821

8 168

9 576

11 821

8 168

CH4

-

N2O

-

other

-

B) Project activity scenarioa)

CO2

2 298

2 837

1 960

2 298

2 837

1 960

2 298

2 837

1 960

2 298

2 837

1 960

2 298

2 837

1 960

2 298

2 837

1 960

CH4

-

N2O

-

other

-

C) Effect ( B-A )

CO2

-7 278

-8 984

-6 208

-7 278

-8 984

-6 208

-7 278

-8 984

-6 208

-7 278

-8 984

-6 208

-7 278

-8 984

-6 208

-7 278

-8 984

-6 208

CH4

-

N2O

-

Other

-

D) Cumulative effect

CO2

-7 278

-8 984

-6 208

-14 556

-17 968

-12 416

-21 834

-26 952

-18 624

-29 112

-35 936

-24 832

-36 390

-44 920

-31 040

-109 170

-134 760

-93 120

CH4

N2O

Other

*The data in black colour are calculated using the programme provided by ÅF Energikonsult Syd AB. The
net calorific value of natural gas – 11,6 MWh/t used in this programme.

The data in red colour presented in this table are calculated according to formulas and discounting values
from DNV "Multi-Project Verification of 31 Swedish-Baltic AIJ Projects" report. The net calorific
value of natural gas – 9,35 MWh/t. Almost all recommendations and remarks from DNV
"Multi-Project Verification of 31 Swedish-Baltic AIJ Projects" report are involved in these
calculations.

The data in blue colour are calculated using the programme provided by ÅF Energikonsult Syd AB and
the real net calorific value of natural gas in Lithuania - 13,6 MWh/t.

Summary table: Actual emission reductions:

GHG

Year 1

= 1996

Year 2

= 1997

Year 3

= 1998

Year 4

= 1999

Year 5

= 2000

...

Year 15

Factual energy production, MWh/year

Biofuel

Natural gas

12 130

11 960

11 800

10 310

8650

10 970

Factual annual fuel consumption, MWh/year

Biofuel

Natural gas

15 163

14 950

14 750

12 888

10 813

13 713

A) Project baseline scenario

CO2

2 323

2 868*

1 981

2 291

2 827

1 954

2 260

2 790

1 928

1 975

2 437

1 684

1 657

2 045

1 413

2 101

2 593

1 792

CH4

-

N2O

-

other

-

B) Project activity scenarioa)

CO2

0

0

0

0

0

0

CH4

-

N2O

-

other

-

C) Effect ( B-A )

CO2

-2 323

-2 868

-1 981

-2 291

-2 827

-1 954

-2 260

-2 790

-1 928

-1 975

-2 437

-1 684

-1 657

-2 045

-1 413

-2 101

-2 593

-1 792

CH4

-

N2O

-

Other

-

D) Cumulative effect

CO2

-2 323

-2 868

-1 981

-4 614

-5 695

-3 935

-6 874

-8 485

-5 863

-8 849

-10 922

-7 547

-10 506

-12 967

-8 960

-31 516

-38 897

-26 880

CH4

-

N2O

-

Other

-

Includes indirect GHG leakage.

The converted boiler house has concentrated on bio-fuel firing, remaining load have been produced in
the central boiler house ( net are connected ). Therefore gas have been used to calculate reductions.

Ongoing work aim to increase the load on the converted boiler and for that reason future production is
estimated tat 35 000 MW/h, real baseline figures used for year 1is not available.

*The data in black colour are calculated using the programme provided by ÅF Energikonsult Syd AB. The
net calorific value of natural gas – 11,6 MWh/t used in this programme.

The data in red colour presented in this table are calculated according to formulas and discounting values
from DNV "Multi-Project Verification of 31 Swedish-Baltic AIJ Projects" report. The net calorific
value of natural gas – 9,35 MWh/t. Almost all recommendations and remarks from DNV
"Multi-Project Verification of 31 Swedish-Baltic AIJ Projects" report are involved in these
calculations.

The data in blue colour are calculated using the programme provided by ÅF Energikonsult Syd AB and
the real net calorific value of natural gas in Lithuania - 13,6 MWh/t.

F. Additionally to financial obligations of Parties included in Annex II to the Convention within the
framework of the financial mechanism as well as to current official development assistance flows

Please indicate all sources of project funding.

Category of funding

(For each source one line)

Amount

(US dollars)

Loan from NUTEK

660.000

Grant from NUTEK for technical assistance

85.000

1 USD = 7.50 SEK

G. Contribution to capacity building, transfer of environmentally sound technologies and know-how to
other Parties, particularly developing country Parties, to enable them to implement the provisions of the
Convention. In this process, the developed country Parties shall support the development and enhancement of
endogenous capacities and technologies of developing country Parties

Transfer of environmentally sound technologies and know-how

Describe briefly

Schematically, the transfer of knowledge involves the following activities over time:

i) Technology transfer through STEM technical specialist during the implementation of the project.

Technology transfer through cooperation between foreign supplier and local partner

Conferences, seminars, documentation and training.

iv) Stimulate "net-working" for the exchange or experience between plant owners with
similar problems, e g "bio-clubs"

Technology transfer has taken place through

STEM technical specialist support to the local project leader and municipality.

The following up group for testing and adjustment of converted boilers has been formed in
Lithuanian Energy Institute. Personnel of Heat-Equipment Research and Testing Laboratory is
carrying out following up procedures keeping a close relation with and AF Energikonsult company as
the main supervisor of conversion projects supported by STEM.

The local company "Kazlu Rudos Metalas" with participation of the Swedish
company "Hotab" mainly performed the execution of these biofuel conversion projects.

iii) Personal from boiler plant has been invited to different seminars and workshops, documentation
for training has been handed over.

There were arranged three seminars through close cooperation between STEM and LEI:

Association "Bio energy and energy saving" has been founded at the end of 1997 to
coordinate the attempts of wood firing equipment producers, wood wastes suppliers and owners of
boiler plants.

Endogenous capacity supported or enhanced:

Endogenous capacity

(Name of organisation1)

Development (DEV) /

enhancement (ENH)

Describe briefly

AB "Kazlu Rudos Metalas"

AB "Kazlu Rudos Metalas"

AB "Umega"

AB "Kazlu Rudos Metalas"

AB "Singaras"

AB "Menranga"

AB "Germeta"

DEV

DEV

DEV

ENH

New biofuel firing technology was developed. Experience in installation and maintenance of modern
western technology.

The new modern equipment for production pellets from wood dust were developed as demand for other
wood fuel kinds increased

The straw burning technology was started to spread as continuation of successfully realized biofuel
conversion projects.

Many smaller boiler conversion projects were successfully finished in Lithuania by local companies
AB "Kazlu Rudos Metalas", AB "Singaras", AB "Elhamers" during past
five years. The implementation of these projects was initiated by the successfully realized STEM
projects.

Ziegzdriai is a psychiatric hospital complex for around 700 patients consisting of 11 buildings, of
which four are for nursing purposes and two are residential buildings for hospital staff. Other
buildings are i.e. for therapy, laundry and garage. The hospital serves 11 regions in Lithuania and
is national hospital for certain disciplines. The heat was earlier supplied from the hospital's
own light oil fired boiler plant. The efficiency was very low, district heating network in bad
condition, rooms were very cold but heat cost was still high.

Type of project:a)

Energy efficiency and fuel switching to renewable

Location (exact, e.g. city, region,

state):

Ziegzdriai Psychiatric Hospital

Kaunas Region

LITHUANIA

Activity starting date:

1994-07 (Letter of Intent)

In operation from:

March 1996

Expected activity ending date:

30 March 2006

Stage of activity:b)

Completed

Lifetime of activity if different from ending date:c)

Expected technical lifetime is 25 years which means that the plant is expected to be in operation
till 2020.

Technical data:d)

The measures comprise conversion of a small boiler plant to combined biofuel and oil firing,
rebuilding of the distribution network and closing down of steam production and changing over of
kitchen and laundry plants from steam to electricity. Other measures are weather-stripping of
windows etc.

c) Methodological work will be required to define lifetime of activities.

d) Methodological work will be required to determine for each type of activity what the minimum data
requirements are.

The lifetime criteria have been arranged in different groups depending on type of implemented activities.
This classification assumes a level of operation and maintenance that is normal in western countries.

Lifetime of activity

Heat production plants (bio fuel)

25 years

New installation of all main equipment parts (fuel handling system, firing equipment and boiler)
and modernisation of secondary equipment.

15 years

Conversion of existing boiler but new installation fuel handling system and firing equipment.
Modernisation of secondary equipment.

10 years

Limited installation of new equipment (only one part of the three main parts, normally the firing
equipment). Modernisation of other equipment.

Heat distribution systems and sub-stations

25 years

Pre-fabricated pipes and installations using certified contractors and supervisor according to EN
norms and applicable district heating practise

15 years

Pre-fabricated pipes and installations without using certified contractors and supervisor

10 years

Modernisation of existing pipes.

Energy efficiency in buildings

25 years

Additional insulation roofs walls etc. with Scandinavian technology.

New installed heating systems.

15 years

Renovation and balancing of heating systems including thermostat valves.

10 years

Weather stripping windows, doors etc.

If a combination of measures is done a reasonable lifetime for the project have to be calculated.

4) Plant cost (to the extent possible):

To the investment costs are referred the cost of the investment proper and the accumulated interest during
the grace period, generally 2 years.

The AIJ/JI cost items are the costs for:

Technical assistance, a technical and administrative support from consultants, during the period from
definition of the project till commissioning. These costs are paid by STEM.

Follow-up, an annual technical and economic follow-up by consultants, hired by STEM, of the operating
results of the plant with the objective to improve on its techno-economic sustainability and its climate
effect. The cost indicated is an average cost per project.

Reporting costs – i e costs in connection with the annual reporting of the project’s
climate effects to UNFCCC. The cost indicated is an average cost per project.

Administration – average costs of STEM staff per project.

Difference in interest rates. STEM applies for its loans generally an interest rate corresponding to
6-month STIBOR (Stockholm InterBank Rate, in April 1999 3,0 %). Assuming a normal lending rate of 7 % means
that this loan is associated with a cost of 4 % in relation to normal lending rate.

Investment/instalment = the borrower’s possible own financing of the investment, followed by the
borrower’s repayment of the loan.

All costs in USD

Country

Zigzdriai BC & EE

1996

1997

1998

1999

2000

0

1

2

3

4

Investment

1. Loan/debt to STEM

320000

285500

251900

218310

186755

2. Added costs

7600

0

0

0

2009

3.Technical assistance

85000

0

0

0

0

AIJ/JI

4. Follow up

0

8500

2200

2267

2139

A. Sweden

costs

5. Reporting costs

0

850

0

744

301

6. Administration

40000

0

0

0

0

7. Difference in interest

4%

11420

10076

8732

7470

8.Accum. costs for AIJ/JI

125000

145770

158046

169789

179700

9.Total costs

452600

431270

409946

388099

366455

Investment

1. Investment/Instalment

2000

42100

33600

33590

33564

2. Lithuania

AIJ/JI

2. Reporting costs

0

0

0

0

0

costs

3. Other costs

0

0

0

0

0

4. Accum. costs for AIJ/JI

0

0

0

0

0

5. Total costs

2000

44100

77700

111290

144854

1 USD=

10

SEK

5) Mutually agreed assessment procedures:

Describe the procedures, including name of organizations involveda):

Lithuanian Ministry of Environment is a central Lithuanian authority responsible on reporting of
JI-projects. This authority assigns a local organisation Lithuanian Energy Institute that is
involved in to the evaluation of the climate effects of this project. Lithuanian Energy Institute
takes the main responsibility to continue measuring, results collecting for JI-reporting.

Bearing in mind that all activities implemented jointly under this pilot phase require prior acceptance,
approval or endorsement by the Governments of the Parties participating in these activities, which shall be
shown as follows:

(a) In the case of joint reporting the report is submitted by the designated national authority of one
participating Party with the concurrence of all other participating Parties as evidenced by attached
letters issued by the relevant national authorities;

(b) In the case of separate reporting, the reports are submitted separately by the designated national
authority of each and every participating Party. Information will only be compiled once reports have been
received from all participating Parties.

* Subsequent reports:

Fourth report.

This report is a joint report:

Yes, Endorsement letter was submitted 2001.

3) General short comment by the government(s) if applicable:

Yes, Agreement with Lithuanian Ministry of the Environment was signed on March 2000.

C. Compatibility with and supportiveness of national economic development and socio economic and
environment priorities and strategies

Describe (to the extent possible) how the activity is compatible with and supportive of national
economic development and socio-economic and environment priorities and strategies

The project meets with the following objectives in the Lithuanian energy sector:

- to reduce the energy intensity

- to reduce dependence on fuel imports

- to create new working places

- to involve the local companies into production of equipment for new firing technology

- to create and improve energy infrastructure based on indigenous energy resources

- to utilize the existing energy production capacity efficiently

- to reduce of fossil fuel consumption which results in emission reduction and currency saving

- to develop cooperation between Baltic, Nordic and other Central European countries

D. Benefits derived from the activities implemented jointly project

Whenever possible, quantitative information should be provided. Failing that, a qualitative description
should be given. If quantitative information becomes available, it could be submitted using the update(s).
(If the amount of quantitative information is too large, the source could be indicated.)

Item

Please fill in

Describe environmental benefits in detail:

Annual emissions reduction:

Projected 2000

2 404 ton CO2 2 290 ton CO2

17 ton SO2 16 ton SO2

1 ton NOx 1 ton NOx

Do quantitative data exist for evaluation of environmental benefits?

Yes. Collected by LEI experts since 1997 and updated every year.

Describe social/cultural benefits in detail:

More stable energy supply.

All rooms in the hospital can now be used, as there are normal working conditions.

Reduced cost for fuel

Higher employment

Environmental aspects

Do quantitative data exist for evaluation of social benefits?

No

Describe economic benefits in detail:

Decreased energy bill by more than 50 %

Do quantitative data exist for evaluation of economic benefits?

Yes. Collected by LEI experts since 1997 and updated every year.

E. Calculation of the contribution of activities implemented jointly projects that bring about real,
measurable and long-term environmental benefits related to the mitigation of climate change that would not
have occurred in the absence of such activities

1) Estimated emissions without the activity (project baseline):

Description of the baseline or reference scenario, including methodologies applied:

Present data reflect emission reductions using status quo (emissions in the period before the conversion to
renewable fuel) for the baseline case. Calculation methods are being revised and will result in a change in
emission reduction. The new data will be introduced as soon as available.

2) Estimated emissions with the activity:

Description of the scenario, including methodologies applied:

Emission reductions are calculated using the IPCC Guidelines, using the Carbon Emission Factor (CEF) for
different types of fuel, using actual system efficiency. For boiler conversion, the decrease in emissions
is calculated in relation to the amount of fossil fuel replaced (status quo).

For energy efficiency project the decrease in emissions reflects the amount of fuel that is saved through
the project. In the case that the system uses renewable fuels, the reduction is calculated comparing the
amount of fossil fuels that was used before the conversion to renewable fuels.

Below comparison is based upon that the base-line scenario represents a status quo solution.

Fill in the following tables as applicable:

Summary table: Projected emission reductions:

GHG

Year 1

= 1996

Year 2

= 1997

Year 3

= 1998

Year 4

= 1999

Year 5

= 2000

...

Year 25

Planned energy production MWh/year

Biofuel

Mazout /light-oil

1 000

3 500

1 000

3 500

1 000

3 500

1 000

3 500

1 000

3 500

1 000

3 500

Planned annual fuel consumption MWh/year

Biofuel

Mazout/light oil

1 220

3 933

1 220

3 933

1 220

3 933

1 220

3 933

1 220

3 933

1 220

3 933

Estimated energy saving MWh/year

7 500

7 500

7 500

7 500

7 500

7 500

A) Project baseline scenario

CO2

3 394

3 360*

3 394

3 360

3 394

3 360

3 394

3 360

3 394

3 360

3 394

3 360

CH4

-

N2O

-

other

-

B) Project activity scenarioa)

CO2

990

980

990

980

990

980

990

980

990

980

990

980

CH4

-

N2O

-

other

-

C) Effect (B-A)

CO2

-2 404

-2 380

-2 404

-2 380

-2 404

-2 380

-2 404

-2 380

-2 404

-2 380

-2 404

-2 380

CH4

-

N2O

-

Other

-

D) Cumulative effect

CO2

-2 404

-2 380

-4 808

-4 760

-7 212

-7 140

-9 616

-9 520

-12 020

-11 900

-60 100

-59 500

CH4

-

N2O

-

Other

-

a) Includes indirect GHG leakages.

*The data in black colour are calculated using the programme provided by ÅF Energikonsult Syd AB. The
data in red colour presented in this table are calculated according to formulas and discounting values from
DNV "Multi-Project Verification of 31 Swedish-Baltic AIJ Projects" report.

Summary table: Actual emission reductions:

GHG

Year 1

= 1996

Year 2

= 1997

Year 3

= 1998

Year 4

= 1999

Year 5

= 2000

...

Year 25

Factual energy production MWh/year

Biofuel

Mazout /light-oil

123

2 451

150

2 435

195

2 459

130

2 368

104

2 524

140

2 447

Factual annual fuel consumption MWh/year

Biofuel

Mazout/light oil

150

2 754

183

2 736

238

2 763

159

2 681

127

2 836

171

2 754

Factual energy saving MWh/year

7 434

7 452

7 425

7 507

7 352

7 434

A) Project baseline scenario

CO2

2 137

2 116*

2 150

2 128

2 155

2 133

2 160

2 138

2 109

2 087

2 142

2 120

CH4

-

N2O

-

other

-

B) Project activity scenarioa)

CO2

693

686

689

682

695

689

670

663

714

707

692

685

CH4

-

N2O

-

other

-

C) Effect (B-A)

CO2

-1 444

-1 430

-1 461

-1 446

-1 460

-1 444

-1 490

-1 475

1 395

-1 380

-1 450

-1 435

CH4

-

N2O

-

Other

-

D) Cumulative effect

CO2

-1 444

-1 430

-2 905

-2 876

-4 365

-4 320

-5 855

-5 795

-7 250

-7 175

-36 250

-35 875

CH4

-

N2O

-

Other

-

a) Includes indirect GHG leakages.

*The data in black colour are calculated using the programme provided by ÅF Energikonsult Syd AB. The
data in red colour presented in this table are calculated according to formulas and discounting values from
DNV "Multi-Project Verification of 31 Swedish-Baltic AIJ Projects" report.

F. Additionally to financial obligations of Parties included in Annex II to the Convention within the
framework of the financial mechanism as well as to current official development assistance flows

Please indicate all sources of project funding.

Category of funding

(For each source one line)

Amount

(US dollars)

Loan from NUTEK

426.000

Grant from NUTEK for technical assistance

113.000

1 USD = 7.50 SEK

G. Contribution to capacity building, transfer of environmentally sound technologies and know-how to
other Parties, particularly developing country Parties, to enable them to implement the provisions of the
Convention. In this process, the developed country Parties shall support the development and enhancement of
endogenous capacities and technologies of developing country Parties

Transfer of environmentally sound technologies and know-how

Describe briefly

Schematically, the transfer of knowledge involves the following activities over time:

i) Technology transfer through STEM technical specialist during the implementation of the project.

Technology transfer through cooperation between foreign supplier and local partner

Conferences, seminars, documentation and training.

iv) Stimulate "net-working" for the exchange or experience between plant owners with
similar problems, e g "bio-clubs"

Technology transfer has taken place through

STEM technical specialist support to the local project leader and municipality.

The following up group for testing and adjustment of converted boilers has been formed in
Lithuanian Energy Institute. Staff of Heat-Equipment Research and Testing Laboratory is carrying
out the following up procedures keeping a close relation with and ÅF Energikonsult company as
the main supervisor of conversion projects supported by STEM.

The Estonian company "Tamult AS" with participation of Swedish company
"Saxlunds" mainly performed the execution of this biofuel conversion projects.
Installation and supply of pipes by a local supplier has been supervised to meet international
standards.

iii) Staff from the boiler plant has been invited to different seminars and work-shops,
documentation for training has been handed over.

There were arranged three seminars through close cooperation between STEM and LEI:

Association "Bio energy and energy saving" has been founded at the end of 1997 to
coordinate the attempts of wood firing equipment producers, wood wastes suppliers and owners of
boiler plants.

Endogenous capacity supported or enhanced:

Endogenous capacity

(Name of organisation1)

Development (DEV) /

enhancement (ENH)

Describe briefly

AB "Kazlu Rudos Metalas"

AB "Kazlu Rudos Metalas"

AB "Umega"

AB "Kazlu Rudos Metalas"

AB "Singaras"

AB "Menranga"

AB "Germeta"

DEV

DEV

DEV

ENH

New biofuel firing technology was developed. Experience in installation and maintenance of modern
western technology.

The new modern equipment for production pellets from wood dust were developed as demand for other
wood fuel kinds increased

The straw burning technology was started to spread as continuation of successfully realized biofuel
conversion projects.

Many smaller boiler conversion projects were successfully finished in Lithuania by local companies
AB "Kazlu Rudos Metalas", AB "Singaras", AB "Elhamers" during past
five years. The implementation of these projects was initiated by the successfully realized STEM
projects.

H. Additional comments, if any, including any practical experience gained or technical difficulties,
effects, impacts or other obstacles encountered

Fill in as appropriate:

Any practical experience gained: Using of steam for kitchen and laundry showed to be very
ineffective. Electrical appliances changed the kitchen and laundry steam appliances.

2) Technical difficulties: The combustion processes adjustment in wood firing boiler is quite
complicated due to different logs size and quality.

3) Effects encountered: Execution of biofuel conversion projects according to STEM JI programme
caused the activity in the following fields:

Production of pre-furnaces and small wood fired boilers by local companies;

Formation a new policy as respect to cleaning the forests and using the wood wastes or preparation of
wood fuel by the forestry industries/administrations;

Research and testing the new equipment, execution of the following up activity, training the local
personnel and etc.

4) Impacts encountered: Due to financial difficulties from the state budget in 1999and 2000 the part
of the light oil was changed by cheaper shale oil. There were no possibilities to expand usage of wood
waste as wood waste recourses in the region are limited.

5) Other obstacles encountered: Quality checks of the work of some local contractors have used
substantial resources from Hospital staff and from ÅF consultants

6) Other: The reconstruction has reduced the energy need with 30 % based on previous years, but
there is also a big change in comfort today. There is warm tap water all the time and the indoor
temperature is above 18 ° C in the hospital.

1) Any practical experience gained:

2) Technical difficulties: There were problems with combustion when the fuel, 100% saw dust, had too
much moisture at the initial stage of biofuel boiler operation.

3) Effects encountered: Execution of biofuel conversion projects according to STEM JI programme
caused the activity in the following fields:

Production of pre-furnaces and small wood fired boilers by local companies;

Formation a new policy as respect to cleaning the forests and using the wood wastes or preparation of
wood fuel by the forest industries/administrations;

Research and testing the new equipment, execution of the following up activity, training of the local
staff etc.

Impacts encountered: The fuel price has proven to be lower because sawmill-waste resources were
higher than expected.

Other obstacles encountered: Personal training in different boiler plants in the Baltic States had
good effects on knowledge of the personal.

The heat production decreased in 2000 due to the higher average ambient temperature in 2000
(October-December) heating season, energy saving measures and conversion steam boiler to hot water.

6) Other: It is possible to increase the load in the boiler house in the future by increasing
production capacities.

nal comments, if any, including any practical experience gained or technical difficulties, effects,
impacts or other obstacles encountered

1) Any practical experience gained: The project has a good demonstration effect. The boiler house
staffs have actively participated in the rebuilding and have a great part in the positive result.